Analyst Breakfast Middle East: Growth in a changing market 3 - - PowerPoint PPT Presentation

Analyst Breakfast

Middle East: Growth in a changing market

3 October 2011

Uwe Krueger

Chief executive

Regional managing director, Middle East

Richard Barrett

Strong foundations

Established brand – 40 years in the region Reputation built on major project delivery

• Burj Al Arab, UAE
• Dubai Metro, UAE
• Durrat Al Bahrain
• Asian Beach Games, Oman
• Bahrain World Trade Centre

1,750 people – strong local presence 10 offices across Gulf Cooperation Council (GCC) Truly multi-skill and multi-local.

4

Burj Al Arab, UAE

2010/11 financial performance

Indicative of an improving market

Margin improvement reflects net recovery of long outstanding debt of c £8m Excellent work in hand due to investment in infrastructure skills. £m 2011 2010 Revenue 140.9 136.6 3 % Operating profit 23.8 14.0 70 % Operating margin 16.9% 10.2% 670 bp Work in hand 89% 57% EXCELLENT Average staff numbers 1,629 2,154 (24) % Closing staff numbers 1,555 1,867 (17) %

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What is driving the market?

Growing populations and improving living standards creating infrastructure demand Government push for economic diversification in energy rich countries Move towards public and integrated transport Local security issues and international politics – spending on defence and security Vision to create world-class cities.

Dubai Metro, UAE

huge potential

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Market outlook

Comparison of project activity 2006-2016

50 100 150 200 250 300 350 400 450 Bahrain Kuwait Oman Qatar Saudi Arabia UAE $ billion Greatest potential in Saudi Arabia and Qatar Value of contracts awarded 2006-11 Budget value of contracts to be awarded 2011-16

7 Source: MEED Projects

Total forward investment c. US$1 trillion

Fees accessible to Atkins over the next 5 years in the GCC

Selected major opportunities

Property 25%

Expected revenue split by sector 2015-16

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Our focus

By sector

Property 47%

Revenue split by sector 2010-11

Property 61%

Revenue split by sector 2008-09

Defence, security and communications 10% Project and cost management 12% Mixed-use infrastructure 18% Planning and management consultancy 10% Project and cost management 11% Planning and management consultancy 11% Planning and management consultancy 5% Mixed-use infrastructure 7% Project and cost management 10% Mixed-use infrastructure 18% Major transportation 17% Major transportation 13% Major transportation 25%

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Our focus

By territory

UAE 75% Oman 7% Bahrain 11% Qatar 5% Kuwait 1% Other 1%

Revenue split by region 2008-09

UAE 58% Oman 11% Bahrain 10% Qatar 5% Kuwait 4% Saudi Arabia 8% Other 4%

Revenue split by region 2010-11

UAE 25% Oman 5% Bahrain 5% Qatar 20% Kuwait 7% Saudi Arabia 30% Other 8%

Expected revenue split by region 2015-16

Sector split by territory

2011/12 year to date

12

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% UAE Oman Bahrain Qatar Kuwait KSA India & Other Property Mixed-Use Infra Plan & MC Major Transport

• Proj. & Cost Mgmt

Def, Comms & Sec

Property Major transportation Mixed-use infrastructure Project and cost mgmt. Planning and management consultancy Defence, communications and security

Saudi Arabia

Competitive dynamic in the market

Differentiators

Skills and knowledge

Availability of highly skilled resources Deep local market knowledge Ability to solve complex problems Proven delivery of major projects.

Typical modal interchange

Locally established in the region's largest market – Saudi Arabia

2009 – licensed for consultancy and project management services 2010 – professional partnership with eminent local architect 2011 – licensed to provide full architectural and engineering design services Offices in Riyadh, Jeddah and Dammam Now able to access significant investment programmes and deliver locally.

Well positioned to address the challenges of working in the region

Understanding the business culture Need for increased local capacity and capability Drive for employment

• f national citizens

Scale and pace of projects.

Oman office opening, January 2011

Conclusion

Well positioned for profitable growth

Long term experience reinforced by high profile projects Strong regional brand associated with high quality and expertise Successful diversification into new markets and sectors Compelling differentiators in a competitive marketplace.

King Abdulaziz International Airport, Jeddah, Kingdom of Saudi Arabia

Questions

3 October 2011

Our work

Examples of projects from across the region

Burj Al Arab

United Arab Emirates Architecture, civil and structural engineering, MEP engineering, cost consultancy.

Durrat Al Bahrain

Bahrain Masterplanning, architecture, landscaping, environment, transport, civil engineering, project management.

Bahrain World Trade Centre

Bahrain Architecture, civil and structural engineering, MEP engineering, sustainable design, construction supervision.

Dubai Metro

United Arab Emirates Full multidisciplinary design, design coordination

• f civil works including geotechnical and site

investigations and construction supervision.

Concept design, civil engineering, procurement and supply chain management, systems engineering and integration, structural design and assessments, stations design and systems.

Mecca Metro

Saudi Arabia

Overall site development which includes infrastructure work, 400 boat marina, 500 bed hotel, 500 bed marina apartments, athletes’ village, all games temporary facilities and landscaping.

Asian Beach Games

Oman

Architecture, civil and structural engineering, special airport systems, ICT, design management, construction planning and scheduling, quantity surveying, interior design, infrastructure, ICT, utilities and transportation.

King Abdulaziz International Airport

Jeddah

Theming architecture, civil, structural and MEP engineering design, ICT design, acoustics consultancy, security threat analysis, site supervision.

Yas Island Waterpark

Abu Dhabi

Detailed masterplanning for 51 km² Area A and concept masterplan review for 180 km² Area B.

Khalifa Industrial Zone

Abu Dhabi

Masterplanning, architecture, building services, acoustics, fire and life safety, vertical transportation, sustainable design, ICT and security systems, cost management, waste management.

ITC Campus, Bangalore

India

Architecture, building services, MEP, civil and structural engineering, fire and life safety consultancy.

Lusail Light Rail

Qatar

Project management, pre-contract design services, construction supervision, post-contract site supervision for 42-km, four-lane highway and five interchanges

Dukhan Highway

Qatar

Etihad Rail

UAE Concept and preliminary design for 1,200km railway stretching across the United Arab Emirates.

Disclaimer

This presentation ("Presentation") is exempt from the financial promotion restriction contained in section 21 of the Financial Services and Markets Act 2000 as it is only made to or is directed at persons who are investment professionals pursuant to Article 19(5) of the Financial Services and Markets Act (Financial Promotion) Order 2005 ("Exempt Recipients"). The information contained in the Presentation should not be relied on as a guide to future performance, and should not be relied on in deciding whether to undertake future investment in WS Atkins plc (the “Company”). It should be noted that the information in the Presentation has not been reviewed by the Company's auditors. For the purposes of the financial promotions regime under the Financial Services and Markets Act 2000, this information is given on the basis of the exemption provided in Article 69 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as it relates to securities which are already admitted to trading on a relevant market. The information, and any opinion contained in the Presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation or an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Further, the information in the Presentation, which does not purport to be comprehensive, has been provided by the Company and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express

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